Middle East War: Pakistan Reeling Under Oil Crisis; Schools, Offices Closed, Big Reduction In Fuel Allowances

Lahore: The ongoing war in Iran is worsening the global energy crisis. In Pakistan, government offices have been ordered to operate for only four days and schools to close for two weeks to avoid the oil crisis. Fuel allowances have also been reduced. On Monday, Pakistan's Prime Minister Shahbaz Sharif announced several measures to reduce government expenditure. These measures include cutting government fuel allowances and closing schools to save fuel. He specifically cited the growing crisis in the Middle East as the reason for this announcement.

What measures has Pakistan taken?

Addressing the Pakistani public late Monday evening, Shahbaz Sharif announced that all schools will be closed for two weeks starting March 16, while higher education (colleges and universities) will move to online mode effective immediately. He also announced that fuel allowances for government departments will be halved, and 50% of government employees will work from home to save fuel. Furthermore, all government offices, except banks, will now operate only four days a week.

Earlier yesterday, Pakistan increased petrol and diesel prices by ₹55 per liter to address a potential crude oil crisis. Announcing this, the Pakistani government stated that it is constantly monitoring oil prices and that the country has sufficient oil reserves, and that these steps are being taken to avoid a potential crisis. Pakistan's Deputy Prime Minister, Ishaq Dar, stated that as soon as global oil prices fall and uninterrupted supplies resume, oil prices in Pakistan will be reduced.

How does Pakistan get its oil?

In fact, most of Pakistan's oil comes through the Strait of Hormuz. Additionally, some of Pakistan's oil was also imported from Iran through the black market. Currently, due to the ongoing crisis in Iran and the blockage of the Strait of Hormuz, many countries around the world, including Pakistan, are facing energy crises. Besides Pakistan, Bangladesh and Myanmar also face the potential for oil and gas shortages. Talking about India, the government has said that the country still has sufficient crude oil reserves and work is being done on alternative supplies coming through Hormuz.